GIRSAL and DBG Extend Partnership to Boost Agricultural Financing for Growth and Self-Reliance

Recent Updates

To stimulate additional financing for the agricultural sector, GIRSAL and Development Bank Ghana (DBG) have extended their partnership for an additional three years. This collaboration aims to accelerate lending to agribusinesses within key value chains, advancing Ghana’s goals of food security, import substitution, and increased foreign exchange earnings.

Together, DBG and GIRSAL will provide long-term financing and guarantees to agribusinesses through Participating Financial Institutions (PFIs). The partnership targets critical value chains such as rice, maize, soya beans, poultry, and cassava, each selected for their strategic importance to Ghana’s economy.

As DBG’s agriculture technical partner, GIRSAL will leverage its technical and advisory services to facilitate and structure financing deals, ensuring the technical feasibility and financial viability of projects. GIRSAL will also provide credit guarantees where needed, sharing the risk and offering financial institutions the confidence to extend loans. Additionally, GIRSAL will support financial institutions in monitoring and managing funded projects.

DBG will supply long-term funding on a wholesale basis to PFIs, which will then on-lend to qualifying agribusinesses. DBG will also co-guarantee loans with GIRSAL through its subsidiary, DBG Guarantees, when necessary.

Both organizations are co-funding a comprehensive training program for financial institution staff and collaborating on policy and advocacy initiatives to address key issues in the agricultural sector. These efforts aim to create a more conducive environment for agribusinesses to thrive.


Tackling Import Dependency

A core goal of this partnership is to reduce Ghana’s dependency on imported commodities like rice, poultry, poultry feeds, and cassava. By boosting local production, the partnership aims to close the demand gap and strengthen Ghana’s economic self-reliance.

For instance, Ghana currently produces 0.75 million metric tons of rice annually, while consumption stands at 1.5 million metric tons, necessitating imports. Similarly, the poultry sector faces significant challenges, with domestic production at 15,000 metric tons against a consumption of 324,047 metric tons. By addressing key issues such as the high cost of poultry feed, the partnership aims to help reverse these trends.


Key Initiatives and Their Impact

To support these goals, DBG and GIRSAL have launched several initiatives. The Rice Fund Initiative aims to boost rice production, thereby enhancing food security and reducing imports. Similarly, the DBG Emergency Economic Programme (DEEP) was introduced in 2022 in response to economic challenges. DEEP seeks to decrease Ghana’s dependency on imported agricultural products and promote self-sufficiency by providing targeted financial support to agribusinesses. In terms of financial support, DBG and GIRSAL are set to disburse GHS500 million over five years to support agribusinesses involved in the cultivation of rice, poultry, maize, and soybeans. This funding is provided at preferential rates, making it easier for agribusinesses to access the capital they need.


A Future of Growth and Self-Reliance

The extended partnership between DBG and GIRSAL through these collaborative efforts and strategic initiatives, is committed to creating a supportive environment for agribusinesses to thrive, significantly contributing to Ghana’s economic growth and stability.